Sergio Marchionne (Italian: [ˈsɛrdʒo marˈkjɔnne]; June 17, 1952 – July 25, 2018) was an Italian-Canadian businessman, widely known for his turnarounds of the automakers Fiat and Chrysler, his business acumen and his outspoken and often frank approach, especially when dealing with unpalatable issues related to his companies and the automotive industry.
Marchionne in 2007
|Born||June 17, 1952|
|Died||July 25, 2018 (aged 66)|
|Alma mater||University of Toronto|
University of Windsor
Osgoode Hall Law School
|Occupation||Former Chairman of CNH Industrial |
Former CEO of Ferrari
Former CEO of Fiat Chrysler Automobiles
Former Chairman of Maserati
Former CEO of FCA Italy
Former CEO of FCA US
Former Chairman of SGS
Marchionne was the chairman of CNH Industrial, the chief executive officer (CEO) of Fiat Chrysler Automobiles, the chairman and CEO of FCA US LLC, the chairman and CEO of Ferrari, and the chairman of Maserati. He was the chairman of Swiss-based SGS and vice chairman of UBS from 2008 to 2010, as well as the chairman of the European Automobile Manufacturers Association for 2012 (first elected in January 2006). He was a member of the Peterson Institute for International Economics, and the chairman of the Italian branch of the Council for the United States and Italy.
Noted for his keen observations of the automotive industry, Marchionne's insights ranged from frank criticism of his company's own products to a highly-regarded 2015 presentation titled Confessions of a Capital Junkie, extolling the benefits of industry consolidation.
Marchionne was widely recognized for turning around Fiat Group to become one of the fastest growing companies in the auto industry, in less than two years. In 2009, he was instrumental in Fiat Group forming a strategic alliance with the ailing US automaker Chrysler, with the support of the U.S. and Canadian governments and trade unions. Less than two years later, following its emergence from Chapter 11, Chrysler returned to profitability, repaying all government loans. In 2014, Fiat and Chrysler merged into a new holding company, Fiat Chrysler Automobiles, now the seventh-largest automobile manufacturer in the world.
Following complications from surgery, Marchionne resigned from all of his positions in July 2018 and died a few days later. The American business channel CNBC described Marchionne as a "legend of automotive industry", while the British newspaper Financial Times considered him as having been "one of the boldest business leaders of his generation".
Marchionne was born in Chieti, Abruzzo, Italy, the son of Concezio Marchionne, from Cugnoli (Abruzzo), and Maria Zuccon from Carnizza (today Krnica, Croatia) near Labin in Istria. His father served as a Carabiniere in Istria, where he met his future wife. Marchionne's grandfather, Giacomo Zuccon, was killed in September 1943 by Yugoslav Partisans near Barban in Istria, while his uncle Giuseppe Zuccon was killed by the Nazis the same year. In 1945, when the region was occupied by the Yugoslav army, Marchionne's parents moved to Chieti in Abruzzo, where Sergio was born.
At 13, Marchionne emigrated with his family to Toronto, Ontario, Canada, where they had relatives. Carrying dual Canadian and Italian citizenship, he spoke fluent English, French and Italian. Marchionne was a Canadian certified general accountant (FCGA), barrister, and a fellow of the Certified General Accountants of Ontario.
Marchionne attended St. Michael's College School, before completing his undergraduate studies in philosophy at the University of Toronto and earning a bachelor of commerce degree (1979) and an MBA (1985) from the University of Windsor as well as a law degree from Osgoode Hall Law School of York University (1983). He received an honorary doctorate from Walsh College (2013).
From 1983 to 1985, he worked as an accountant and tax specialist for Deloitte & Touche in Canada. From 1985 to 1988, he was Group Controller and then Director of Corporate Development at the Lawson Mardon Group in Toronto. In 1989, he moved to Glenex Industries where he worked for two years as Executive Vice President.
From 1990 to 1992, he was Vice President of Finance and Chief Financial Officer at Acklands Ltd. Between 1992 and 1994, he served as Vice President of Legal and Corporate Development and Chief Financial Officer of the Lawson Group, which was acquired by Alusuisse Lonza (Algroup) in 1994.
From 1994 to 2000, he worked at Algroup (Alusuisse Lonza Group Limited) based in Zurich, where he became Chief Executive Officer in 1997. He then took the helm of the Lonza Group in Basel, after its spin-off from Algroup, serving first as Chief Executive Officer and Managing Director (2000–2001) and then as Chairman (2002).
In February 2002, he became Chief Executive Officer and Managing Director of SGS S.A. of Geneva where, in March 2006, he was appointed Chairman. Marchionne was elected as an independent member of the Board of Directors of Fiat S.p.A. in May 2003, until being appointed CEO in 2004.
In June 2009, when Chrysler emerged from Chapter 11 bankruptcy protection, Fiat Group received a 20% stake in Chrysler Group LLC and Marchionne was appointed CEO, replacing existing CEO Robert Nardelli.
In February 2011 Marchionne sparked widespread controversy in the U.S. when he remarked at the J.D. Power & Associates International Automotive Roundtable that Chrysler's bail-out loans from the U.S. government carried "shyster rates".
Marchionne immediately issued a public apology, stating "I regret the remark and consider it inappropriate" and going on to explain that "As the only parties willing to underwrite the risk associated with Chrysler’s recovery plan, the two governments [U.S. and Canadian] levied interest rates that, although appropriate at the time, are above current market conditions."
In July 2011, following the purchase of the ownership interests held by Canada and the US Treasury, Fiat’s stake in Chrysler increased to 53.5% and in September 2011, Marchionne was also elected Chairman of Chrysler. Fiat and Chrysler officially merged under Marchionne's leadership on August 1, 2014.
Following the 2015 Volkswagen emissions scandal, in January 2017, the EPA also accused Fiat Chrysler of illegally installing software that allowed excess diesel emissions to go undetected. Marchionne denied any wrongdoing. Therein he was critical of the EPA and rejected comparisons between Fiat Chrysler and Volkswagen.
Marchionne last appeared in public on June 26 in Rome, presenting a Jeep to the Carabinieri, Italy’s military police. FCA subsequently announced Marchionne had taken medical leave for shoulder surgery at the University Hospital of Zürich in Switzerland — adding on the day of surgery he would not return due to post-surgical complications. After further serious complications, on July 21, Marchionne was replaced at FCA, Ferrari, SGS and CNH.
Marchionne earned a reputation for an outspoken and often blunt approach. In a 2009 Forbes interview, Massimo Vecchio, an analyst with Mediobanca, commented on the contrast and Marchionne's controversial management style:
"He's got a lot of American in his management style. The only thing that matters to him is results. If you don't deliver, you are out. He is quite ruthless. When Marchionne took over the company [Fiat], he was literally firing one manager a day but there was a leadership problem and nobody wanted to take hard decisions. The communication from bottom to top in management was slow and wrong. He also changed that. He reduced the layers of management and gave his role a more direct view of what the business was doing. And of course his ego is very big and sometimes people who had clashes with him were basically fired. Looking at his style from outside it seems awful, but he delivered."
Despite the buttoned-down business world in which he worked, Marchionne disliked having to think about his wardrobe, and became known for wearing black sweaters and jeans — keeping a supply of both in each of his residences. Reporters noted that he had not been seen wearing a necktie since 2007.
Honors and awardsEdit
- Cavaliere del Lavoro – June 1, 2006
- 2005, Honorary Doctor of Laws from the University of Windsor (Canada)
- 2007, Masters honoris causa from the CUOA Foundation (Italy)
- 2007, Degree in Economics honoris causa from the Università degli Studi di Cassino
- 2008, he received a degree ad honorem in Industrial Engineering and Management from Polytechnic University of Turin (Italy)
- Honorary Doctor of Business Administration from the University of Toledo (Ohio), May 8, 2011
- 2010, Marchionne was awarded the Premio Pico della Mirandola.
- 2011, Marchionne was awarded The Deming Cup 2011 for operational excellence presented by W. Edwards Deming Center at Columbia Business School.
- 2011, The Business Council for International Understanding honored Marchionne with the Dwight D. Eisenhower Leadership Award
- 2015, Marchionne was awarded the Hennick Medal for Career Achievement at Osgoode Hall Law School, York University by The Hennick Centre for Business and Law.
- 2015, Marchionne SAE Foundation Industry Leadership Award, when being was CEO of Fiat Chrysler Automobiles (FCA) and Chairman of CNH Industrial N.V.. The award of 2016 has been recognized to Mark Fields, Chief Executive Officer of Ford Motor Company.
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